Asset Acceptance Capital Corp. Announces 10th Straight Year of Record Results

WARREN, Mich. — Asset Acceptance Capital Corp. (Nasdaq: AACC), a leading purchaser and collector of charged-off consumer receivables, today announced record earnings for the fourth quarter and year ended December 31, 2003.

The company said its fourth quarter and 2003 fiscal year results reflect its operations prior to its reorganization into Asset Acceptance Capital Corp. on February 4, 2004. The company reorganized in preparation for its initial public offering, which it commenced on February 5, 2004.

Revenues for the fourth quarter of 2003 were $44.3 million, a 53.1 percent increase compared to the $28.9 million reported for the fourth quarter of 2002. Net income for the fourth quarter increased to $11.1 million, a 73.2 percent increase compared to $6.4 million in the same period of 2002. Pro forma net income for the fourth quarter 2003 was $9.1 million and $5.0 million for the same period in 2002. Net income for the fourth quarter of 2003 and 2002 includes income tax expense on 60 percent of the pretax income as the other 40 percent of pretax income was attributable to a pass through entity. As used in this press release, pro forma net income includes income tax expense assuming that all the company’s subsidiaries were 100 percent owned and the company was a C corporation for all periods reported.

Total revenues for fiscal 2003 climbed to $160.2 million, a 59.0 percent increase over the $100.7 million in 2002. Net income for 2003 was $37.7 million compared with $27.9 million the previous year. On a pro forma basis, Asset Acceptance Capital reported a 62.7 percent increase in net income for 2003 of $30.1 million from $18.5 million. Net income for 2003 includes income tax expense on 60 percent of the pretax income as the other 40 percent of pretax income was attributable to a pass through entity. In 2002, net income includes income tax expense on 60 percent of the pretax income in the fourth quarter only, as the entire company was a pass through entity for the first nine months of the year and thus recognized no income tax expense during that period.

“From both an operational and financial perspective, 2003 was a very good year for us,” said Brad Bradley, CEO of Asset Acceptance Capital. “We continued our track record of strong growth in both portfolio acquisitions and collections, demonstrating the success of our disciplined, returns-based approach.”

For the complete press release, please visit Asset Acceptance Capital Corp. Announces 10th Straight Year of Record Results.